[opendtv] Re: A Perfect Storm Hits Media Businesses
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Mon, 7 Sep 2009 09:46:15 -0400
At 6:19 PM -0400 9/5/09, Albert Manfredi wrote:
I submit to you that even those who watch a given series every week
MAY not be inclined to do so if they had to pay $24 or $50 just for
that one show. I suggest that most TV watching is done to relax, not
necessarily because one is an avid fan of the show, akin to
"trekkies."
The typical cable/DBS home today is spending $50 - $70 per month just
for TV services - broadband is on top of that.
That's $600 to $900 per year. You can buy a lot of programs for that!
In general, certainly I agree. On the other hand, with DTV, this has
suddenly become possible for news and weather, EVEN OTA. I can tune
in any time of day or night and get excellent 24-hour news channels
that give diverse points of view. It's great to have our MHz
Networks station 10 multicasts. Always something to watch.
Nice but a bit late. This brings DTV broadcasters up to par with
where cable has been for two decades. But neither offer information
on demand like the Internet.
Like who won the game that did not end before I went to bed last night.
With TV it could take 10-15 minutes to find out. With the Internet,
less than a minute.
Right. And my bet is, she isn't watching pay TV over the Internet.
You should set her up with OTA DTV.
She mentioned Hulu. I could help her set up a DTV receiver, however,
I'm not certain that it offers enough programming that she wants to
justify the expense.
Thanks for making my point, Craig. Things evolve, and they have
always evolved toward NOT paying per the event. Whether it's
telephone, cellular phones, or TV over the Internet, over cable. You
pay a flat fee for all the service you care to use, only
difffernetiaing bundles for MVPDs.
Rubbish!
Tell that to the movie industry or the video game industry - each are
still generating more that $20 billion annually although the home
video segment is declining as paid Internet downloads replace DVD and
Cable/DBS pay per view.
Consumers are spending more for their entertainment fixes today than
at ANY time in U.S. history. The trend is NOT to free, except for
those who view pirated media, either because they have limited
expendable incomes or because they think the media o are making too
much money and this is their way to fight back.
Internet distribution of music and TV has been successful because
the vast majority of it is free, aside from the flat broadband
hookup fee. If you start charging for it, you watch as people either
don't use the service, or they drop theri MVPD subscriptions.
Hmmm...
http://www.videobusiness.com/article/CA6660103.html
According to NPD Group, just 3% of consumers said they bought a
permanent movie download for their PC or TV in recent months. Yet 7%
said they digitally rented a movie from an online source for their
computers and TV sets.
When NPD asked people where they bought a download-to-own movie in
the past six months, 65% said iTunes. Amazon.com's Video on Demand
was runner-up at 17%. PlayStation Store was third, and both Vudu and
CinemaNow marginally registered in the survey.
Of people surveyed who said they had digitally rented movies, 68%
said they did so from Netflix. Next came iTunes at 21%, followed by
Xbox Live. PlayStation Store and Amazon Video on Demand had
single-digit percentage showings. Similarly, Vudu and CinemaNow did
not have a significant presence in the survey's rental portion.
http://www.dmwmedia.com/news/2007/01/29/report-tv-movie-download-revenues-to-hit-6-3-billion-in-2012
Or how about this report Bert?
Report: TV, Movie Download Revenues to Hit $6.3 Billion in 2012
Authored by Mark Hefflinger on January 29, 2007 - 10:45am.
London - Fueled by broadband penetration, revenues from legitimate
movie and TV show download services are expected to grow tenfold to
$6.3 billion in 2012, according to a report from market research firm
Informa Telecoms and Media.
Services such as Apple's iTunes Store, which sells TV shows and more
recently, movies, along with Google Video, Movielink and others will
benefit from an increasing number of global households with
high-speed Internet access.
However, Informa warned, some media firms have been reluctant to
embrace online television, a remnant of the piracy fears realized by
the music industry.
"Companies that do not make their content available online will
suffer most from the effects of piracy," said Informa media research
manager Adam Thomas.
You're advocating going back to the old model, as far as I can tell.
Paying per event.
Wrong. The old model was to pay for advertiser supported content at
the check-out counter or to go to the theater. That was augmented
with cable/DBS and direct sales and rentals with the introduction of
the VCR and later with DVDs.
Now all of this is moving to digital networked distribution. And yes,
it is moving toward a more direct link between the viewer and the
content owner. The viewer now has multiple options:
The MPVD - all the crap you can eat for a monthly fee. Like the cheap
all-you-can-eat buffets, you pay for everything and only eat a small
portion of what is offered.
Pay to view (rental)
Pay to own (DVD and now digital download)
Targeted ad supported - less ads because they are more relevant and
the advertiser knows who is watching.
It's ALL ABOUT news ways to ge3t a piece of a very large revenue pie.
Regards
Craig
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